PRSI Classes for Company Directors and Employees: Class S vs Class A Explained
Are you Class S or Class A? How PRSI classes work for company directors and staff in Ireland, current employee and employer rates, and the benefits you get
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- Abbey Blue Formations
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- 6 min read
Most guides to prsi classes list every class from A to S and stop there. If you own a company, the question that matters is narrower: are you Class S or Class A, and what does that mean for the benefits you can claim and the PRSI your company pays?
This guide focuses on the classes small companies actually use. It explains the shareholding test for directors, sets out current rates for employees, employers and directors, and shows what your company pays on a small payroll.
What PRSI is and why your class matters
Pay Related Social Insurance (PRSI) is a contribution on earnings that funds social welfare payments. Your class decides two things: how much you pay, and which payments you can claim later.
Class A contributors can access the full range of social insurance payments. Other classes, including Class S, cover a narrower list. Paying the right class matters, because a contribution record built under the wrong class can affect a future claim.
The PRSI classes small companies actually use
- Class A: most employees on a contract of service earning €38 or more a week. It is split into subclasses by weekly pay (AO, AX, AL and A1).
- Class S: the self-employed, including sole traders and certain company directors, with income of €5,000 or more a year.
- Class J: employees earning under €38 a week, people over pensionable age receiving the State Pension (Contributory), and some subsidiary employments.
- Class M: no contribution liability, for example employees under 16.
Public-sector classes (B, C, D, H and K) rarely apply to a small private company.
Class S vs Class A for company directors
The 50% shareholding test
A director who owns or controls 50% or more of the shares in the company they work for pays class s prsi. This is the usual position for a founder who owns the company outright, or two founders on a 50/50 split.
Directors with under 50%
Below 50%, the answer is decided case by case. A minority director working under the control of the board may be Class A, but not always. The Department of Social Protection looks at how the working relationship operates, using the Code of Practice on employment status.
Getting your class confirmed
If you are unsure, ask the Scope Section of the Department of Social Protection, which deals with the insurability of employment. Settle it before you run your first director payroll. Our guide to PPSN for Irish company directors covers the registration side.
Current PRSI rates for employees, employers and directors
From 1 October 2026, these prsi rates apply (the previous rates are in brackets):
| Class | Weekly pay | Employee | Employer |
|---|---|---|---|
| AO | €38 to €352 | Nil | 9.15% (9.00%) |
| AX | €352.01 to €424 | 4.35% (4.20%) | 9.15% (9.00%) |
| AL | €424.01 to €552 | 4.35% (4.20%) | 9.15% (9.00%) |
| A1 | Over €552 | 4.35% (4.20%) | 11.40% (11.25%) |
| S | All income | 4.35% (4.20%) | None |
If you are asking about prsi class a1, it is the subclass for employees earning over €552 a week, which covers most full-time staff. AX employees get a PRSI credit of up to €12 a week, reducing by one-sixth of earnings over €352.01 and ending once earnings pass €424.
Class S has a minimum annual contribution of €650. Self-employed company directors pay their Class S PRSI through the PAYE system.
Budget 2027 announced an increase in the employer PRSI threshold from €552 to €600 a week for 2027. Check the final start date with your payroll provider before you update your figures.
What each class entitles you to
| Payment | Class A | Class S |
|---|---|---|
| State Pension (Contributory) | Yes | Yes |
| Maternity, Paternity, Adoptive and Parent's Benefit | Yes | Yes |
| Treatment Benefit | Yes | Yes |
| Invalidity Pension | Yes | Yes |
| Jobseeker's Benefit | Yes | Self-employed version |
| Illness Benefit and other short-term payments | Yes | No |
The biggest gap for a Class S director is short-term illness cover. If you could not work for a few months, there is no Illness Benefit to fall back on. Many directors plug that gap with income protection insurance, or by keeping a cash buffer in the business.
Your choice of salary and dividends also affects your contribution record. Our guide on how to pay yourself from your company covers that balance, and contractors should also read about running a contractor limited company.
Employer PRSI: what your company pays and how to report it
So, what is employer prsi? It is the contribution your company pays on top of each employee's gross pay. Employer prsi is a business cost, not a deduction from the employee's wages.
Your company calculates it through payroll and reports it to Revenue on or before each pay date, alongside income tax, USC and employee PRSI. Here is a simple weekly example at the rates from 1 October 2026:
- Director (Class S), €1,000 a week: director pays €43.50. No employer prsi is due.
- Employee (Class A1), €700 a week: employee pays €30.45. The company pays €79.80 in employer PRSI.
Over a full year, that employee costs the company about €4,150 in employer PRSI on top of salary. If you are deciding whether to hire or stay a sole operator, our comparison of sole trader vs limited company is a useful starting point.
Frequently Asked Questions
What is PRSI class A1?
PRSI class a1 is the Class A subclass for employees earning more than €552 a week. From 1 October 2026 the employee pays 4.35% on all earnings and the employer pays 11.40%. It gives access to the full range of social insurance payments, including short-term payments such as Illness Benefit.
What is employer PRSI and how much is it?
If you are asking what is employer prsi, it is paid by the company on top of an employee's wages. From 1 October 2026 it is 9.15% where weekly pay is €552 or less, and 11.40% above that. Budget 2027 announced a rise in the €552 threshold to €600 for 2027. No employer PRSI applies to Class S directors.
Do company directors pay Class S or Class A PRSI?
Directors who own or control 50% or more of the company's shares pay class s prsi. Below 50%, the Department of Social Protection decides case by case based on how the working relationship operates. The Scope Section can give a formal decision if you need certainty.
How do I check my PRSI contributions?
You can request a copy of your full PRSI record through MyWelfare.ie. If the online service does not work for you, contact the PRSI Records section of the Department of Social Protection. It is worth checking your record every few years so you can correct gaps early.
How much PRSI should I pay?
It depends on your class and earnings. Under the current prsi rates from 1 October 2026, Class A employees pay 4.35% on all earnings once weekly pay is over €352, with a tapered credit up to €424. Class S directors pay 4.35% of income, with a €650 annual minimum. Understanding prsi classes is the first step.
Get director payroll right from day one
Picking the right PRSI class, running payroll on time and keeping records straight is part of what our bookkeeping and payroll support covers. If you have not set up your company yet, click here to price your company formation and see exactly what is included.